Yeah.. just don't let it be one year. I fluctuate between 1 and 3 months, depending on various things.
Kinda makes them think fast...
Nik
I think the idea is that instead of providing a cd, you provide a full smugmug account for a year, with the photos in it. No revenue from print sales but presumably you've already charged the right amount to cover that off.
e.g. A set of action shots from a soccer game - I had a price of $200 to attend one game, make shots print ready and provide one cd to the team. Instead, I raise the price to $225, and put the print ready shots into the smugmug gallery. Give the team manager the password, and they take it from there. I wasn't going to earn $ from additional print revenue by giving a cd, unless someone wanted custom art work. So, this is the same end result, but a nicer presentation than a cd.
So, different from a proof gallery or such where limiting time to order prints pushes people to make decisions.
I think the idea is that instead of providing a cd, you provide a full smugmug account for a year, with the photos in it. No revenue from print sales but presumably you've already charged the right amount to cover that off.
That's the idea; it's an alternative mechanism to deliver the original files to the customer when you've agreed to supply files so they can print for themselves.
The reason it's for a year is because that's the term of a SM gift subscription.
The reason for setting it up on SM is twofold, really:
Raise the chances of the clients getting satisfactory prints (and not returning to complain to you that prints from their local Safeway don't look good).
Toss a little extra support to our awesome Smuggy hosts.
Obviously, if you're not allowing the customer to print for himself, this would be a silly thing to do. That would certainly seem to apply to Nik's scenario. But the OP is giving original files to the customer for self-serve printing, and specifically asked how to ensure that the customer will get good prints. This is one way he might do it.
I think the idea is that instead of providing a cd, you provide a full smugmug account for a year, with the photos in it. No revenue from print sales but presumably you've already charged the right amount to cover that off.
e.g. A set of action shots from a soccer game - I had a price of $200 to attend one game, make shots print ready and provide one cd to the team. Instead, I raise the price to $225, and put the print ready shots into the smugmug gallery. Give the team manager the password, and they take it from there. I wasn't going to earn $ from additional print revenue by giving a cd, unless someone wanted custom art work. So, this is the same end result, but a nicer presentation than a cd.
So, different from a proof gallery or such where limiting time to order prints pushes people to make decisions.
Or did you means something else?
Well, I guess the biggest difference is that I rarely shoot events as the source of income. My paid work is almost always with predetermined customers rather than with a crowd of strangers who may or may not be interested in purchase print/download. Events (like an airshow, renfair or reenactment) are mostly for fun, albeit lately I managed to get into black even with them:-)
Tax Hat is on...
In California, you are required to charge a client sales tax if you deliver any prints to the client. Therefore you have to apply for a Resale Permit via The State Board of Equalization. So if you go to Walmart, Costco, Sam's or even your local camera store and print, then you mark up and deliver, you have to charge sales tax on the full job - including labor.If you sell digital files, they and the labor to produce them are also taxable. If you print at home and sell them directly to the client - full sales tax even on labor. If you sell to a gallery, then they have a resale number and there is no tax to the gallery. They are the one to collect tax from the end buyer - but you have paperwork to do.
If you put your prints on Smugmug, then EZ Prints (based in Georgia) is the seller of the tangible merchandise. Then the client is responsible to pay sales tax on their own. You get a product commission for selling from Ez Prints so you only have earned income on the markup you decide upon.
You do need to do your paperwork with the State. If you fail, they will then find you.
BTW, I am teaching a class for PPA on QuickBooks and the Business side of Photography for their Super Monday on October 27th at my studio.
Correct me if I'm wrong, but I don't think you need all that expenses/red tape if all you want is to sell a few prints online every now and then... And the next year it can be all covered by a simple Schedule C...
Nikolai,
If Smugmug sells the photo then there are no tax issues for me, since Smugmug is the selling party / merchant.
However if the order comes directly to me, and I am collecting the money, then I am responsible for the tax.
One think I have learned is the tax creatures have no sense of humor, or understanding.
May I make a suggestion? Rather than deliver a CD, create a one-year Smugmug gallery for the client. Use a SM gift subscription, which will cost you $34.95 and you'll get $10 back in referral credits. https://www.smugmug.com/price/gift-subscription-details.mg
Pre-populate the gallery with the full-size original files. Organize it, make it pretty, and password-protect it. Make sure that "Allow prints" and "Allow originals" are turned on.
Then hand it over to the clients. Explain to them that you have given them the original files, plus a one-year online gallery for their family and friends. They can download all the files, order a backup CD from SM, and/or order SM's excellent prints at near-Walmart pricing. They don't have to spend their time schlepping the CD around to their friends who want to make prints. And they can renew the gallery at the end of their year if they like, or just make sure they've downloaded all their files by that time.
You will have still delivered the original files as promised, for them to use as they choose. But this would make it easier and more convenient for them to use a known-good printing service. :ivar
Excellent suggestion for event package deals! Thanks momwac! You are a true smugger!
If Smugmug sells the photo then there are no tax issues for me, since Smugmug is the selling party / merchant.
However if the order comes directly to me, and I am collecting the money, then I am responsible for the tax.
One think I have learned is the tax creatures have no sense of humor, or understanding.
Sam
Sam,
I'm not talking about not paying taxes :nono. All I'm saying that Schedule C allows you to carry out some private business without getting involved into LLC or INC. Just keep the records of your expenses/income and put al that into Schedule C form when the you do the taxes... It will take no more than 30 min of your time for the whole year, trust me. Of course, if it's more than $20..$30K per year some sort of incorporation becomes convenient and desirable...
Just my $0.00002.
No one size of tax return strategy fits all. Some people with less than $30k in income could easily benefit from being a Corp or LLC; And a Schedule C can take way more than 30 minutes. Also with Schedule C you have to file for Self Employment tax; Depreciation Schedules, etc.
Anyone in business should seek advice from their own accountant and/or attorney to make sure that what they have is appropriate for their circumstances.
Sam,
I'm not talking about not paying taxes :nono. All I'm saying that Schedule C allows you to carry out some private business without getting involved into LLC or INC. Just keep the records of your expenses/income and put al that into Schedule C form when the you do the taxes... It will take no more than 30 min of your time for the whole year, trust me. Of course, if it's more than $20..$30K per year some sort of incorporation becomes convenient and desirable...
Just my $0.00002.
Nik,
....
Anyone in business should seek advice from their own accountant and/or attorney to make sure that what they have is appropriate for their circumstances.
Sam,
I'm not talking about not paying taxes :nono. All I'm saying that Schedule C allows you to carry out some private business without getting involved into LLC or INC. Just keep the records of your expenses/income and put al that into Schedule C form when the you do the taxes... It will take no more than 30 min of your time for the whole year, trust me. Of course, if it's more than $20..$30K per year some sort of incorporation becomes convenient and desirable...
Just my $0.00002.
Nikolai,
Ah, let me be more clear. I am not concerned with "income tax". That's easy to handle. My concern is with "sale tax". That's a pain in the kester, and you need to do that each and every time period, "on time" sales or no sales, rain or shine.
I had a business in the 70's with 5 employees, and filed sales tax every month. That wasn't hard to remember or do, just part of the business routine, but making a few sales here and there would make it easy to forget to fill out the forms. Also once you start down that path you better keep GOOD records. The sales tax group want to know where, and when the sales took place. Different cities, and counties in Ca have different tax rates, and you need to keep track of all that, and allocate the tax to the correct location. You can't just throw everything in a shoe box.
Ah, let me be more clear. I am not concerned with "income tax". That's easy to handle. My concern is with "sale tax". That's a pain in the kester, and you need to do that each and every time period, "on time" sales or no sales, rain or shine.
I had a business in the 70's with 5 employees, and filed sales tax every month. That wasn't hard to remember or do, just part of the business routine, but making a few sales here and there would make it easy to forget to fill out the forms. Also once you start down that path you better keep GOOD records. The sales tax group want to know where, and when the sales took place. Different cities, and counties in Ca have different tax rates, and you need to keep track of all that, and allocate the tax to the correct location. You can't just throw everything in a shoe box.
Ah, let me be more clear. I am not concerned with "income tax". That's easy to handle. My concern is with "sale tax". That's a pain in the kester, and you need to do that each and every time period, "on time" sales or no sales, rain or shine.
I had a business in the 70's with 5 employees, and filed sales tax every month. That wasn't hard to remember or do, just part of the business routine, but making a few sales here and there would make it easy to forget to fill out the forms. Also once you start down that path you better keep GOOD records. The sales tax group want to know where, and when the sales took place. Different cities, and counties in Ca have different tax rates, and you need to keep track of all that, and allocate the tax to the correct location. You can't just throw everything in a shoe box.
Sam
Hello,
If there is anything we can do to help please don't hesitate to contact us. We love working with SmugMug but we are there for everyone who has questions.
David Egolf
Quality Engineer
David Egolf CafePress Svcs.
1890 Beaver Ridge Circle
Norcross, GA 30071
W : 678-405-5500 ext 5620
C : 678-790-4553
If there is anything we can do to help please don't hesitate to contact us. We love working with Smugmug but we are there for everyone who has questions.
David Egolf
Quality Engineer
David,
This issue is two months old. It's been beat, dead, and buried?
Any sales tax issue when selling through Smugmug is dirt simple for the photographer.
Smugmug is the retail outlet, and has all the sales tax responsibility.
Easy for us, and since Smugmug is doing a good volume easy for them to have an organized system to deal with it on a routine basis.
Comments
Nik
I think the idea is that instead of providing a cd, you provide a full smugmug account for a year, with the photos in it. No revenue from print sales but presumably you've already charged the right amount to cover that off.
e.g. A set of action shots from a soccer game - I had a price of $200 to attend one game, make shots print ready and provide one cd to the team. Instead, I raise the price to $225, and put the print ready shots into the smugmug gallery. Give the team manager the password, and they take it from there. I wasn't going to earn $ from additional print revenue by giving a cd, unless someone wanted custom art work. So, this is the same end result, but a nicer presentation than a cd.
So, different from a proof gallery or such where limiting time to order prints pushes people to make decisions.
Or did you means something else?
My Galleries My Photography BLOG
Ramblings About Me
That's the idea; it's an alternative mechanism to deliver the original files to the customer when you've agreed to supply files so they can print for themselves.
The reason it's for a year is because that's the term of a SM gift subscription.
The reason for setting it up on SM is twofold, really:
- Raise the chances of the clients getting satisfactory prints (and not returning to complain to you that prints from their local Safeway don't look good).
- Toss a little extra support to our awesome Smuggy hosts.
Obviously, if you're not allowing the customer to print for himself, this would be a silly thing to do. That would certainly seem to apply to Nik's scenario. But the OP is giving original files to the customer for self-serve printing, and specifically asked how to ensure that the customer will get good prints. This is one way he might do it.Well, I guess the biggest difference is that I rarely shoot events as the source of income. My paid work is almost always with predetermined customers rather than with a crowd of strangers who may or may not be interested in purchase print/download. Events (like an airshow, renfair or reenactment) are mostly for fun, albeit lately I managed to get into black even with them:-)
In California, you are required to charge a client sales tax if you deliver any prints to the client. Therefore you have to apply for a Resale Permit via The State Board of Equalization. So if you go to Walmart, Costco, Sam's or even your local camera store and print, then you mark up and deliver, you have to charge sales tax on the full job - including labor.If you sell digital files, they and the labor to produce them are also taxable. If you print at home and sell them directly to the client - full sales tax even on labor. If you sell to a gallery, then they have a resale number and there is no tax to the gallery. They are the one to collect tax from the end buyer - but you have paperwork to do.
If you put your prints on Smugmug, then EZ Prints (based in Georgia) is the seller of the tangible merchandise. Then the client is responsible to pay sales tax on their own. You get a product commission for selling from Ez Prints so you only have earned income on the markup you decide upon.
You do need to do your paperwork with the State. If you fail, they will then find you.
BTW, I am teaching a class for PPA on QuickBooks and the Business side of Photography for their Super Monday on October 27th at my studio.
Flash Frozen Photography, Inc.
http://flashfrozenphotography.com
Nikolai,
If Smugmug sells the photo then there are no tax issues for me, since Smugmug is the selling party / merchant.
However if the order comes directly to me, and I am collecting the money, then I am responsible for the tax.
One think I have learned is the tax creatures have no sense of humor, or understanding.
Sam
Interesting idea.
Sam
What! Ever heard about the people who got a million dollar refund check and had to give it back?
Flash Frozen Photography, Inc.
http://flashfrozenphotography.com
Sam,
I'm not talking about not paying taxes :nono. All I'm saying that Schedule C allows you to carry out some private business without getting involved into LLC or INC. Just keep the records of your expenses/income and put al that into Schedule C form when the you do the taxes... It will take no more than 30 min of your time for the whole year, trust me. Of course, if it's more than $20..$30K per year some sort of incorporation becomes convenient and desirable...
Just my $0.00002.
Nik,
No one size of tax return strategy fits all. Some people with less than $30k in income could easily benefit from being a Corp or LLC; And a Schedule C can take way more than 30 minutes. Also with Schedule C you have to file for Self Employment tax; Depreciation Schedules, etc.
Anyone in business should seek advice from their own accountant and/or attorney to make sure that what they have is appropriate for their circumstances.
Flash Frozen Photography, Inc.
http://flashfrozenphotography.com
Nikolai,
Ah, let me be more clear. I am not concerned with "income tax". That's easy to handle. My concern is with "sale tax". That's a pain in the kester, and you need to do that each and every time period, "on time" sales or no sales, rain or shine.
I had a business in the 70's with 5 employees, and filed sales tax every month. That wasn't hard to remember or do, just part of the business routine, but making a few sales here and there would make it easy to forget to fill out the forms. Also once you start down that path you better keep GOOD records. The sales tax group want to know where, and when the sales took place. Different cities, and counties in Ca have different tax rates, and you need to keep track of all that, and allocate the tax to the correct location. You can't just throw everything in a shoe box.
Sam
I see! Thank you for the clarification!
Hello,
If there is anything we can do to help please don't hesitate to contact us. We love working with SmugMug but we are there for everyone who has questions.
David Egolf
Quality Engineer
1890 Beaver Ridge Circle
Norcross, GA 30071
W : 678-405-5500 ext 5620
C : 678-790-4553
David,
This issue is two months old. It's been beat, dead, and buried?
Any sales tax issue when selling through Smugmug is dirt simple for the photographer.
Smugmug is the retail outlet, and has all the sales tax responsibility.
Easy for us, and since Smugmug is doing a good volume easy for them to have an organized system to deal with it on a routine basis.
Sam